Qualifications
Your business is eligible for SBA financial assistance if it is:

• Operated for profit
• Organized as a sole proprietorship, corporation or partnership (includes LLC and LLP)
• Doing business in the U.S. or its possessions
• Within the following size guidelines:
  • Retail and Services - Generally up to $6.5 million in annual sales. Some industries may be higher.
  • Construction - Up to $31 million in annual sales
  • Wholesale - Up to 100 employees
  • Manufacturing - Generally up to 500 employees
  • Specialty Contractors - Up to $13 million in annual sales
  • Annual sales determined by an average of sales for the 3 preceding fiscal years.

Collateral and Loan Requirements
For many types of SBA loans, the assets being financed - such as equipment or real estate - serve as the collateral for your loan. However, principal owners must have acceptable personal credit histories and may have to pledge available business or personally owned assets. SBA financing requirements can include:

• Personal guarantees of owners with 20% or more ownership in the business. Personal guarantees from active owners with less than 20% ownership may be required.
• Accounts receivable and inventory, depending on collection history and marketability.
• Machinery and equipment.
• Real estate and improvements.